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eCommerce Fulfilment Systems


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ThisdfdfdfdfThis lecture covers several fulfilment methods for an ecommerce site. In addition, it also examine advantages and disadvantages of using third party fulfilment services.

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eCommerce Fulfilment Systems

  1. 1. eCommerce Fulfilment Systems H a j r Ë H y s e n i O c t 2 0 1 1 1 GettyIcons (2011)Tuesday, 25 October 11
  2. 2. Fulfilment definition Why Fulfilment? Fulfilment solutions Homework 2Tuesday, 25 October 11
  3. 3. the process when a individual or company fulfils their obligations to deliver a consumer an item or product which has been ordered/purchased or request from the company The process of sending/delivering a product which has been ordered/purchased online. 3 Turban et al (2010)Tuesday, 25 October 11
  4. 4. Deliveries of small quantities to a large number of destinations? 4Tuesday, 25 October 11
  5. 5. In 1995, Amazon launched its new business model called Virtual Retailing/ eCommerce(today) 5 Turban et al (2010)Tuesday, 25 October 11
  6. 6. The Solution Step 1. Order placed/Computer checked the location It identified distribution centre to fulfil the order Step 2. A “flowmeister” receives orders and assigns them to specific employees Step 3. The items (books, games & dCs) are stocked in bins. Each bin has a red light and button which turns on when new orders are received. Step 4. The picked items are placed into a crate moving on a conveyor belt which is part of a winding belt system that is more than 10 miles long Step 5. All crates arrive at central location where bar codes are matched with order numbers. Step 6. If gift wrapping was selected, this is done by hand Step 7. Boxes are packed/taped/weighed/labeled and routed to one of 40 truck bays in the warehouse. Then they go to UPS for shipping 6 Turban et al (2010)Tuesday, 25 October 11
  7. 7. Advantages Warehouse facilities, Shipping costs, Packing materials, eCommerce support, Fulfilment costs • No delivery, no client support = = company receives bad reputation but not the fulfilment company • Product damage mostly not covered from the fulfilment company Disadvantages 7Tuesday, 25 October 11
  8. 8. Making sure the customer will pay Checking for in-stock availability Arranging shipments Order Fulfilment Insurance process Dealing with Customised orders In house production Use contractors Deal with returns 8 Turban et al (2010)Tuesday, 25 October 11
  9. 9. Amazon Shipwire iForce eBay . o n. so g in m co 9Tuesday, 25 October 11
  10. 10. YouTube Video - Fulfilment by Amazon Tour v=HOicZ_AgsSA 10Tuesday, 25 October 11
  11. 11. Amazon iForce Shipwire Eligible for Super eBay Selling Manager Handling returns Saver Delivery Integration IRS Competitive Price Real-time shipping for Intelligent Routing Sorting your eBay sales System Customer Service/ Real-time of shipment SMaRT System handling returns tracking ReSCU Products can be Fully synchronised system purchased by with eBay - Automatic (Reverse Stock Control customers across EU Order Fulfiment Utility) 11Tuesday, 25 October 11
  12. 12. Homework Visit and find its eCommerce fulfilment services Compare them with those of Then go to and simulate a purchase. Report your experiences in your Research Files 12Tuesday, 25 October 11
  13. 13. Suggested Reading Turban, E., King, D,. McKay, J., Marshall, P., Lee, J. K (2010) Electronic Commerce A Managerial Perspective. Prentice Hall. 13Tuesday, 25 October 11